2008 Federal Budget has Direct Impact on NAO Partners

The 2008 Federal Budget, announced this week by the minority Conservative Government, ear-marked millions of dollars in programs that may be of interest to Angels.

Selected excerpts from the budget comments that are of interest:

“EDC (Export Development Canada) will enhance its existing Export Guarantee Program by increasing the guarantee coverage from 75 to 90 per cent for loans up to $500,000. In addition, EDC is working closely with Canadian financial institutions to strengthen its financial guarantees by enhancing the coverage available for larger transactions. These enhancements to EDC’s guarantee programs are particularly important to the automotive sector, where EDC has over 400 clients.”

“Innovative businesses play a crucial role in translating knowledge into world-leading products and services, opening new markets and creating high-value jobs for Canadians. Budget 2008 sets aside $75 million for the Business Development Bank of Canada to support the creation of a new privately run venture capital fund.”

“Canada’s Entrepreneurial Advantage is about putting in place the conditions for our businesses and entrepreneurs to invest and thrive at home and abroad. This means creating a competitive business environment that supports innovation, rewards success, and reduces unnecessary regulations and red tape that frustrate business initiative.”

“In Budget 2007 and in its science and technology strategy, Mobilizing Science and Technology to Canada’s Advantage, the Government committed to improve the SR&ED tax incentive program, including its administration, in a cost-effective manner. To that end, consultations were undertaken on how to make the SR&ED tax incentives more effective for Canadian businesses.”

“Budget 2008 proposes to increase the expenditure limit from $2 million to $3 million and to increase the upper limit for the taxable capital phase-out range from $15 million to $50 million. The upper limit of the taxable income phase-out range will also be increased, from $600,000 to $700,000. Increasing these limits will encourage small CCPCs to grow.”

Now if they would only announced the Innovation Productivity Tax Credit…